Assoc.Alcohols (ASALCBR)
CyclicalFairStock Score: 26/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹713.95 |
| Market Cap | ₹1,433.55 Cr |
| P/E Ratio | 16.83 |
| ROCE | 20.01% |
| ROE | 19.31% |
| Dividend Yield | 0.24% |
| Profit Growth | -28.5% |
| Debt/Equity | 0.1 |
| Sales Growth | 5.3% |
| Promoter Holding | 61.22% |
| 52-Week Range | ₹660.65 — ₹1,277 |
| Sector | Beverages |
| Book Value | ₹364.39 |
Strengths
- Strong profitability with ROE of 19.31% and ROCE of 20.01%.
- Very low leverage: Debt/Equity of only 0.13.
- Promoter holding of 61.22% aligns management with minority shareholders.
- Profit grew 4.64% even while sales declined, showing some earnings resilience.
- Piotroski F-Score of 6/9 suggests acceptable basic financial health.
Concerns
- Sales declined 20.38%, indicating serious top-line weakness.
- Valuation is not cheap: P/E of 17.57, P/B of 3.97, and PEG of 3.79.
- Dividend yield is negligible at 0.25%, offering little income support.
- FairStock Score of 21/100 flags the stock as risky.
AI Analysis
When I study Associated Alcohols, I see a business with some admirable qualities but not enough margin of safety at this price. The company earns a return on equity of 19.31% and a return on capital employed of 20.01%, and it carries almost no debt, with debt-to-equity of only 0.13. That kind of financial discipline is what I like; promoter holding of 61.22% also aligns owners with public shareholders. Yet I cannot ignore the top line: sales have fallen 20.38%, and while net profits still grew 4.64%, that divergence makes me want to dig deeper before trusting the quality of earnings. At ₹922.35, with a P/E of 17.57 and a PEG ratio of 3.79, I am not being paid to take this risk. The dividend yield is just 0.25%, so standing still earns almost nothing. Book value is ₹232.55, giving a P/B of 3.97; I prefer a cushion, not a premium. The latest quarter shows sales of ₹260 Cr and a net profit of ₹27 Cr, which is roughly a 10% margin, but one quarter does not reverse a 20% decline in annual revenue. The FairStock Score labels this risky at 21/100, and I agree with the caution. In Graham's words, price is what you pay, value is what you get. Here, I cannot confidently say value exceeds price. I would place this on my watchlist, not in my portfolio, until sales growth turns positive or the price drops to a level that truly rewards me for the risk.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer